New mortgage rules adopted in hopes of spurring home loans

By Marcy Gordon
The Associated Press

WASHINGTON — Buying a home may have gotten a little easier this week.

With the financial crisis and subprime mortgage bust receding farther into history, the government is loosening some financial rules, hoping to inject more life into the country’s still-recovering housing market.

Banks and borrowers stand to benefit from the new rules unveiled Tuesday by six federal agencies. While banks will see relaxed guidelines for packaging and selling mortgage securities, fewer borrowers likely will need to make hefty down payments. The board of the Federal Deposit Insurance Corp. voted to adopt the new rules, and two other agencies approved.

The Federal Reserve has scheduled a vote for Wednesday.

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